Simply Industrial Model for industrial building owners to free up capital and to provide Simply Industrial opportunities to purchase quality buildings

BACKGROUND

Many industrial property owners are wanting to retire, sell up or release some capital. If they sell they often feel “what do they do with the money” and they do not necessarily want to sell their asset that they have worked so hard for.

MODEL

  • Find appropriate vendors and buildings through word of mouth and networking with real estate agents (commission paid).

  • Negotiate a price (see Purchase Criteria) and carry out due diligence.

  • Transaction: Pay vendor 40-50% of agreed price which is funded from bank debt. Balance from equity in fund or raised funds.

OPPORTUNITY

Simply Industrial creates a platform for:

  • Industrial property owners to meet their financial goals by freeing up capital.

  • Simply Industrial sourcing quality buildings.

PURCHASE CRITERIA

  • Building value determined by negotiation or Registered Valuation (including rental assessment).

  • Rent to be below or at market rent and to be within the Simply Industrial Simple Rules for purchasing i.e. ideally favourable rent reviews, annual increases.

OUR MODEL'S BENEFITS FOR THE VENDOR

Releases capital - Easy way to free up capital

Retains a share of the asset they are selling - Take shares in the Simply Industrial Fund as equity

Releases any personal guarantees - Liability becomes Simply Industrial’s with no personal guarantees required

Discreet - No public sales process

Capital growth and dividends - Still reap the returns via capital growth and dividends (or share reinvestment scheme)

Reduced selling fees - Commission fees to any selling entity split 50/50 (if any incurred at all)

SIMPLY INDUSTRIAL MODEL BENEFITS

Enables the Simply Industrial to find quality properties - It is hard in this market to find quality properties

More off-market opportunities - Often best deals and value come from off-market deals

Maximises the equity in the property fund to buy properties - Often less market outlay to buy a property

Reduces potential reliance on bank for funding - Maximises the Simply Industrial asset

Stronger networking with real estate agents - Stronger relationships means more off-market